The plastic card invasion

The plastic card invasion.

The tendency of modern data-driven economies is to structure economic activity in such a way that an increasing amount of data is generated. For example, the fact that only a few years ago few people in continental Europe used a credit card, and that now almost everybody who has a bank account also has a credit card, shows that payment by credit card is preferred to anonymous cash transaction. If somebody pays by credit card, there are computers that register the transaction. They record who paid what amount where, and for what purpose. This is valuable information. It allows businesses to "better know their customers". Credit card companies today belong to the largest data repositories anywhere. However, credit card companies have tried to introduce cash cards, or "electronic purses", plastic cards which can be used in lieu of cash in shops - a type of payment, that is not really catching on. In the small town of Ennis, Ireland's "information age town" a field test carried out by Visa, found that people are extremely reluctant to change their cash into bits. "It is just too modern", was the conclusion of an Ennis shopkeeper.

Credit cards may be the most common, but certainly not the only way in which an economic activity produces a data surplus. In the end, the data surplus generated by a credit card is limited to just a few indicators. The tendency of the data body industry is to collect as much data as possible from each single transaction. Therefore, a range of new plastic card applications is emerging.

Most big retailers or service industries, offer customer cards which reward customers with certain discounts or gifts when used frequently. However, the cost of these discounts is easily set off by the value consumer data that is generated each time a card is pulled through the magnetic reading device. Frequent-flyer cards are among the most common plastic data-collecting devices. Often such frequent-flyer cards are also credit cards, in which case travel and consumption data are already combined at the point of sale, creating further rationalisation of the process.

Electronic networks have created a general tendency to move to move marketing decisions to the point of sale, rather than locating them in central locations. This way, the marketing process becomes cheaper and more efficient for the company.

The ideal situation for the data body industry and for government bureaucracy would be a complete centralised storage and management of people's data, and a collection process the pass unnoticed and ensures that the data in question are always current. Many efforts in this direction have been undertaken. One of the most recent such projects is called the smart card. Also referred to as chip cards (because it operates not just with a magnetic stripe but also an computer chip) smart cards are multi-application "intelligent" plastic cards that carry a lot more than the usual information about its holder. For example, a smart card can carry details about right of access to facilities, credit information, social security, and electoral status all in one. Technically there are no limits to the type of information stored on smart cards. In principle it is possible to store an individual's entire data body on a card. Not surprisingly, smart card technologies have been most readily accepted in places with a lack of a privacy protection culture, such as the US, the UK, Spain, and some Latin American Countries.

The Irish town of Ennis, although striving to become "one of the technologically most advanced towns in the world" may have frustrated the expectations of the plastic card industry. Yet this is only a minute, if embarrassing, setback on the path towards global rationalisation of data collection. The economic benefits which the plastic card data collection technologies promises for retailers, E-commerce, marketing and bureaucracies all over the world have given rise to a wealth of research programmes, field tests, projects and government policies, all aimed at promoting the data body economy and adopting it as the business model of the future.

Links to plastic card trade associations:

Card Europe - Association for Smart Card and Related Industries

AIM - Global Trade Association for Automatic Identification and Data Collection

Card Forum

Smart Card Industry Association

Links to plastic card research programmes:

MIT (Massachusetts Institute of Technology)

Ohio University

Pittsburgh University

Cranfield University

Links to publications:

Card Technology Magazine

Links to EU research programmes

ADEPT2

COCLICO

COST219

DISTINCT

SAMPO

SATURN

SOSCARD

Producers

Schlumberger

Gemplus

Bull

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Late 1950s - Early 1960s: Second Generation Computers

An important change in the development of computers occurred in 1948 with the invention of the transistor. It replaced the large, unwieldy vacuum tube and as a result led to a shrinking in size of electronic machinery. The transistor was first applied to a computer in 1956. Combined with the advances in magnetic-core memory, the use of transistors resulted in computers that were smaller, faster, more reliable and more energy-efficient than their predecessors.

Stretch by IBM and LARC by Sperry-Rand (1959) were the first large-scale machines to take advantage of the transistor technology (and also used assembly language instead of the difficult machine language). Both developed for atomic energy laboratories could handle enormous amounts of data, but still were costly and too powerful for the business sector's needs. Therefore only two LARC's were ever installed.

Throughout the early 1960s there were a number of commercially successful computers (for example the IBM 1401) used in business, universities, and government and by 1965 most large firms routinely processed financial information by using computers. Decisive for the success of computers in business was the stored program concept and the development of sophisticated high-level programming languages like FORTRAN (Formular Translator), 1956, and COBOL (Common Business-Oriented Language), 1960, that gave them the flexibility to be cost effective and productive. The invention of second generation computers also marked the beginning of an entire branch, the software industry, and the birth of a wide range of new types of careers.

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ECHELON Main Stations

Location

Country

Target/Task

Relations

MORWENSTOW

UK

INTELSAT, Atlantic, Europe, Indian Ocean

NSA, GCHQ

SUGAR GROVE

USA

INTELSAT, Atlantic, North and South America

NSA

YAKIMA FIRING CENTER

USA

INTELSAT, Pacific

NSA

WAIHOPAI

NEW ZEALAND

INTELSAT, Pacific

NSA, GCSB

GERALDTON

AUSTRALIA

INTELSAT, Pacific

NSA, DSD

















MENWITH HILL

UK

Sat, Groundstation, Microwave(land based)

NSA, GCHQ

SHOAL BAY

AUSTRALIA

Indonesian Sat

NSA, DSD

LEITRIM

CANADA

Latin American Sat

NSA, CSE

BAD AIBLING

GERMANY

Sat, Groundstation

NSA

MISAWA

JAPAN

Sat

NSA

















PINE GAP

AUSTRALIA

Groundstation

CIA

















FORT MEADE

USA

Dictionary Processing

NSA Headquarters

WASHINGTON

USA

Dictionary Processing

NSA

OTTAWA

CANADA

Dictionary Processing

CSE

CHELTENHAM

UK

Dictionary Processing

GCHQ

CANBERRA

AUSTRALIA

Dictionary Processing

DSD

WELLINGTON

NEW ZEALAND

Dictionary Processing

GCSB Headquarters



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1961: Installation of the First Industrial Robot

Industrial robotics, an automation technology relying on the two technologies of numerical control and teleoperators, started to gain widespread attendance in the 1960s. The first industrial robot was installed at General Motors in 1961. Developed by Joe Engelberger and George Devol, UNIMATE obeyed step-by-step commands stored on a magnetic drum and with its 4,000 pound arm sequenced and stacked hot pieces of die-cast metal.

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Virtual body and data body



The result of this informatisation is the creation of a virtual body which is the exterior of a man or woman's social existence. It plays the same role that the physical body, except located in virtual space (it has no real location). The virtual body holds a certain emancipatory potential. It allows us to go to places and to do things which in the physical world would be impossible. It does not have the weight of the physical body, and is less conditioned by physical laws. It therefore allows one to create an identity of one's own, with much less restrictions than would apply in the physical world.

But this new freedom has a price. In the shadow of virtualisation, the data body has emerged. The data body is a virtual body which is composed of the files connected to an individual. As the Critical Art Ensemble observe in their book Flesh Machine, the data body is the "fascist sibling" of the virtual body; it is " a much more highly developed virtual form, and one that exists in complete service to the corporate and police state."

The virtual character of the data body means that social regulation that applies to the real body is absent. While there are limits to the manipulation and exploitation of the real body (even if these limits are not respected everywhere), there is little regulation concerning the manipulation and exploitation of the data body, although the manipulation of the data body is much easier to perform than that of the real body. The seizure of the data body from outside the concerned individual is often undetected as it has become part of the basic structure of an informatised society. But data bodies serve as raw material for the "New Economy". Both business and governments claim access to data bodies. Power can be exercised, and democratic decision-taking procedures bypassed by seizing data bodies. This totalitarian potential of the data body makes the data body a deeply problematic phenomenon that calls for an understanding of data as social construction rather than as something representative of an objective reality. How data bodies are generated, what happens to them and who has control over them is therefore a highly relevant political question.

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IBM

IBM (International Business Machines Corporation) manufactures and develops cumputer hardware equipment, application and sysem software, and related equipment.

IBM produced the first PC (Personal Computer), and its decision to make Microsoft DOS the standard operating system initiated Microsoft's rise to global dominance in PC software.

Business indicators:

1999 Sales: $ 86,548 (+ 7,2 % from 1998)

Market capitalization: $ 181 bn

Employees: approx. 291,000

Corporate website: www.ibm.com

http://www.ibm.com/
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Edward L. Bernays

Born 1891 in Vienna, Bernays was one of the founders of modern public relations. An enigmatic character, he was a master of mise en scène with far-reaching contacts in the world of business and politics. The nephew of Sigmund Freund and related with Heinrich Heine, he was also among the first to pursue PR for governments and to produce pseudo-events. Bernays considered the manipulation of public opinion as an important element of mass democracies and was of the opinion that only through PR a society's order can be kept.

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Automation

Automation is concerned with the application of machines to tasks once performed by humans or, increasingly, to tasks that would otherwise be impossible. Although the term mechanization is often used to refer to the simple replacement of human labor by machines, automation generally implies the integration of machines into a self-governing system. Automation has revolutionized those areas in which it has been introduced, and there is scarcely an aspect of modern life that has been unaffected by it. Nearly all industrial installations of automation, and in particular robotics, involve a replacement of human labor by an automated system. Therefore, one of the direct effects of automation in factory operations is the dislocation of human labor from the workplace. The long-term effects of automation on employment and unemployment rates are debatable. Most studies in this area have been controversial and inconclusive. As of the early 1990s, there were fewer than 100,000 robots installed in American factories, compared with a total work force of more than 100 million persons, about 20 million of whom work in factories.

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Computer programming language

A computer programming language is any of various languages for expressing a set of detailed instructions for a digital computer. Such a language consists of characters and rules for combining them into symbols and words.

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CANYON

A US military signals intelligence satellite of the second generation from the 1970s.

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General Motors

American corporation that was the world's largest automotive manufacturer and perhaps the largest industrial corporation throughout most of the 20th century. It was founded in 1908 to consolidate several motorcar companies and today operates manufacturing and assembly plants and distribution centers throughout the United States and Canada and many other countries. Its major products include automobiles and trucks, a wide range of automotive components, engines, and defense and aerospace material. In 1996 it sold Electronic Data Systems, and in 1997 it sold the defense units of its Hughes Electronics subsidiary to the Raytheon Company, thus leaving the computer-services and defense-aerospace fields in order to concentrate on its automotive businesses. The company's headquarters are in Detroit, Michigan.

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Sperry

Formerly (1955 - 1979) Sperry Rand Corporation, American corporation that merged with the Burroughs Corporation in 1986 to form Unisys Corporation, a large computer manufacturer.

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PGP

A cryptographic software application that was developed by Phil Zimmerman at the Massachusetts Institute of Technology. Pretty Good Privacy (PGP) is a cryptographic product family that enables people to securely exchange messages, and to secure files, disk volumes and network connections with both privacy and strong authentication.

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Division of labor

The term refers to the separation of a work process into a number of tasks, with each task performed by a separate person or group of persons. It is most often applied to mass production systems, where it is one of the basic organizing principles of the assembly line. Breaking down work into simple, repetitive tasks eliminates unnecessary motion and limits the handling of tools and parts. The consequent reduction in production time and the ability to replace craftsmen with lower-paid, unskilled workers result in lower production costs and a less expensive final product. The Scottish economist Adam Smith saw in this splitting of tasks a key to economic progress by providing a cheaper and more efficient means of producing economic goods.

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Critical Art Ensemble

Critical Art Ensemble is a collective of five artists of various specializations dedicated to exploring the intersections between art, technology, radical politics, and critical theory. CAE have published a number of books and carried out innovative art projects containing insightful and ironic theoretical contributions to media art. Projects include Addictionmania, Useless Technology, The Therapeutic State, Diseases of Consciousness, Machineworld, As Above So Below, and Flesh Machine.

http://www.critical-art.net

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Henry Ford

b. July 30, 1863, Wayne County, Michigan, U.S.
d. April 7, 1947, Dearborn, Michigan, U.S.

American industrialist who revolutionized factory production with his assembly-line methods. Celebrated as both a technological genius and a folk hero, Ford was the creative force behind an industry of unprecedented size and wealth that in only a few decades permanently changed the economic and social character of the United States. Once Ford realized the tremendous part he and his Model T automobile had played in bringing about this change, he wanted nothing more than to reverse it, or at least to recapture the rural values of his boyhood. Henry Ford, then, is an apt symbol of the transition from an agricultural to an industrial America.

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Machine language

Initially computer programmers had to write instructions in machine language. This coded language, which can be understood and executed directly by the computer without conversion or translation, consists of binary digits representing operation codes and memory addresses. Because it is made up of strings of 1s and 0s, machine language is difficult for humans to use.

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INTELSAT

INTELSAT is in business since 1964 and owns and operates a global communications satellite system of 17 geostationary satellites providing capacity for voice, video, corporate/private networks and Internet in more than 200 countries and territories.



http://www.intelsat.int/index.htm

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